In the 1990s, after seeing young tech stocks surge, investors wildly bet on young companies with little to no revenue on promises that a huge sea change was on the horizon for the global economy.
SPACs have continued to show rampant speculation throughout, as investors looked for the types of gains those stocks enjoyed in 2020. While Nikola could be in the vaporware camp, Lucid Motors Inc., is another story. It is seen as a legitimate potential Tesla rival, based in Newark, Calif., not far from Tesla’s Silicon Valley manufacturing site in Fremont. Lucid was founded by Peter Rawlinson, the chief engineer of the Tesla Model S, and is developing an electric luxury sedan that is expected to launch this year, as well as an electric SUV.
“Never underestimate the market’s ability to find products for people who have money. The market has more money than product right now. The shelf of near-ready IPOs was pretty bare, and laid more barren with COVID-19,” said Scott Galloway, a professor of marketing at New York University’s Stern School of Business, in an interview late last year. “So all of a sudden, there is good money looking for public companies. It’s incredible how fast this submarket has reformed around SPACS.
Ritter was so impressed with the returns that he invested in a few SPACs himself in the aftermarket, after seeing his funds in an investment account earn barely anything in interest. During both the tulip boom and the dot-com boom, new and relatively unknown products were introduced, and prices reached staggering levels based on hype for potential demand that was not sustainable. Many companies like Pets.com and Webvan ultimately collapsed, with business ideas that were ahead of their time, while others took advantage of the market mania, such as WorldCom, which deceived investors with one of the biggest accounting frauds in history.
In 2020, 15 private electric-vehicle companies were purchased by blank-check companies and are now publicly traded, according to Renaissance Capital, which tracks IPOS and has its own IPO ETF IPOS, -0.55%. But most of them don’t have a proven technology or business model, little or no revenue and no profits in sight.
Germany electric car and 60% US states marginal emissions = 550g CO2/kWh 550 x 0.2 kWh x km = 110g CO2. petrol car = 120g CO2. battery = +5tons CO2. another battery after 10-12 years: +5t CO2 does this really help to reduce CO2?
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